Technical Note On Managing Inventories Periodic Review System Case Study Solution & Analysis
Intro
NASCAR (National Association for Stock Cars And Truck Vehicle Racing) is a company performing series of Stock Automobile racing in United States and acting as an approving body for driving the rules for Stock Automobile Racing. 2) Stock Automobile Racing by NASCAR is the 2nd largest viewer sport, with highest number of sponsors. 1) The other sources of earnings for Technical Note On Managing Inventories Periodic Review System Case Study Analysis consists of; 10% of the overall income from television rights, sanctioning fees i.e. $1-2 million per race, and licencing NASCAR brand name to business.
NASCAR has a closed corporate culture with the non-interventionist method. The building of Vehicle of Tomorrow by NASCAR, with an objective of safety for the motorists, brought different stress amongst the stakeholders of the sport.
The communication audit, performed in 2010, revealed that despite the reality that the organisation highly rely on the communications between its stakeholders, there was no identifiable company interaction method. (
The audit mentioned various doing not have of NASCAR in terms of absence of internal combination, absence of fan management strategy and absence of social and digital media of marketing. The business has complicated ecosystem with independent tracks, chauffeurs and groups. This structure with closed corporate culture bring different challenges in accelerating a change. Other partners in environment includes the media networks i.e. television and radio, and business online marketers.
Technical Note On Managing Inventories Periodic Review System Case Study Analysis viewers was extremely loyal to the sport and the brand names connected with the NASCAR, making it appealing for sponsors and corporate marketers.
Problem Statement.
The business is presently dealing with the issue of declining rates of presence at racing tracks and rates of tv audiences. This can put a significant effect on its revenues from sponsors, media rights, and from other sources of revenue.
Situational Analysis.
The business was rather successful till 2005 with its standard marketing techniques, but quickly after 2005 the company starts dealing with different issues consisting of decrease of its fan base. Several external in addition to internal aspects are accountable for the decrease. Internal factors include; insufficient financial investment in social networks and other digital medias of.
Fan base of NASCAR comprised of married males with a typical age of 47, which passes their fandom to their youngsters and create generational commitment. Other difficulties for NASCAR includes the shift of its fans to other sports as they were improving their fan's experience permitting access to their broadcasts out of the houses through jumbo turns, Wi-Fi gain access to, etc.
SWOT Analysis.
Strengths.
NASCAR core competencies includes it has rights of dictating guidelines as approving body. Guidelines and guidelines concerning expert stock car racing are dictated by NASCAR like if any team with needed skills and resources can enter into races by following guidelines and regulations determined by NASCAR. All the occasions of NASCAR are sponsored by corporates because of biggest brand name commitment of fans towards brand names promoted by Technical Note On Managing Inventories Periodic Review System Case Study Help.
Weak points.
Weak points of NASCAR includes its close culture which is non collaborative. Technical Note On Managing Inventories Periodic Review System Case Study Help develops Vehicle of Tomorrow without cooperation so result is that drivers did not like that concept. It was also discovered that NASCAR had no efficient strategy for company communication.
Opportunities.
Opportunities in SWOT analysis are external aspects which can be favourable to business or the external factors on which company is having competitive advantage. NASCAR generally utilized to rely on standard media sources like local newspaper for promotion of its sports. Normally these standard media sources attempt to cover their house team and specific kind of occasions. NASCAR likewise familiarized from these standard media outlets that sport was tough to cover. Media landscape also altered from standard to digital landscape. Papers failed. NASCAR can work on its abilities to get optimal possible take advantage of this new digital landscape. NASCAR have underinvestment in digital resources. So it can capitalize in social and digital media to get its benefits. Digital rights of NASCAR were likewise sold to Turner Sports. NASCAR utilized to earn money check of around $15 million yearly from Turner Sports. There are number of cons behind this deal. For example Technical Note On Managing Inventories Periodic Review System Case Study Help had to get approval from Turner Sport if it wish to develop its Facebook page, twitter account or perhaps mobile application. Turner Sport likewise had rights of every video which is shoot throughout race at track. If media sources like papers, magazines and cable television channels want to post videos of races on their respective pages then they are required to pay licensing costs to Turner Sport. NASCAR can work on terms and conditions and attempt to work out with Turner Sports to get maximum advantages of it. Star power plays very crucial function in creating incomes from every sport. Nevertheless it was noted that Technical Note On Managing Inventories Periodic Review System Case Study Help is lagging in this area i.e. star power. When sports fans were asked relating to popular stars and stars then NASCAR chauffeur was not found even in top twenty responses. NASCAR can put efforts in this area too for earnings generation. They ought to assist their chauffeurs that how they can become sport stars. 4 strategic focuses which are generated by research study group can likewise be served as opportunity for NESCAR. These 4 strategic focuses compares and analysis Technical Note On Managing Inventories Periodic Review System Case Study Solution methods.
Dangers
Economic down turn was experienced in late 2000 which can be hazard for NASCAR because if there is economic down turn then individuals would be having less return on financial investment. Economic down turn likewise results in boost fuel prices which likewise impacted NASCAR. Now if NASCAR make substantial investments in new sectors which are based on new consumers then it may face negative remarks from its core fan base.
Porter's 5 Forces Analysis
Porter's 5 forces is a model that is used to analyse industry in which company is working. It assists in determining what are strengths and weakness of any specific industry. It suggest that every market is different from one another. It is necessary to comprehend industry in which company is working due to the fact that NASCAR's bottom line i.e. net revenue is heavily depends on this. There are 5 forces that are utilized to recognize profitability, intensity and appearance of Technical Note On Managing Inventories Periodic Review System Case Study Solution business.
Competitive Competition
This force shows capability of competitors. Groups generally represents sponsors in NASCAR and the medium of advertising is drivers. It can be said that chauffeurs and race cars are rivals. These drivers can go against NASCAR if they improved opportunity in regards to prizes and tv exposure. Then audiences can move to those other intriguing vehicles and drivers, if viewers enjoy other race cars and drivers more than NASCAR. NASCAR might be having threat from its 2 direct competitors that is Solution 1 and Moto GP. They require to produce competitive advantages for chauffeurs so they don't move to other competitors.
Provider Power
The supplier power indicates the number of providers are available in industry and what is the cost connected with provider if business shifts from one supplier to another. Since drivers with required abilities and resources are restricted, in this market there is supply monopoly.
Purchaser Power
This force is concerning to consumers that is it simple for consumers to shift to other items. Then clients are less likely to switch, if there is more switching cost is associated. When it comes to NASCAR consumers are its audiences. Viewers can change to other rivals quickly because audiences will having low changing cost.
Risk of Alternative
Alternatives are referred as options. The alternatives in this case can be other home entertainment indicates like viewers can move to other sports. So there are wide range of substitutes are readily available in this situation which suggests that threat of substitute is high.
Hazard of New Entry
In the case of NASCAR danger of new entry is low. They require to construct vehicles and racing tracks and likewise requires to pay significant quantity to drivers for switching.
PESTEL Analysis
Political
As NASCAR is working in numerous markets so it needs to deal with various policies. It is also noted that NASCAR has dealt with increased analysis relating to regulatory. Every government has various top priority so NASCAR has to be prepared for it as priority can be shifted to other sector.
Economical
Economic factors includes taxation rate, currency exchange rate, economic performance of that specific company, conditions of labour market, inflation rate and so on. If there is federal government intervention in the marketing and sales sector, fortunes of the NASCAR and its competitors can be impacted. NASCAR can utilize capabilities of staff members to produce new opportunities and improve existing opportunities.
Social
Every society is various from each other. Each has different social worths and standards. It helps in understanding regarding society and preference of clients. Social elements includes traditions, culture, attitudes towards particular services and products, demographics, standards, interests etc. It can be concluded that advertising through other ways instead of standard (i.e. paper) can be preferred in this society.
Technical
In this case of NASCAR it can be kept in mind that companies are heavily investing for research and advancement. NASCAR ought to also work on its media rights policy with Turner Broadcasting System.
Legal
Legal plays an important function in every country since every nation has different legal terms and conditions. Technical Note On Managing Inventories Periodic Review System Case Study Help needs to be ensure that they secure their legal rights in every county so any business does not hurt to its legal rights.
Environmental
Ecological factors are likewise important for every organisation. NASCAR needs to make sure that its automobiles are not creating contamination more than appropriate level.
7 P's of Marketing
Item
The items of Technical Note On Managing Inventories Periodic Review System Case Study Help in its item portfolio are; racing events tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand, approving rules for races and ad-space to business online marketers throughout broadcast of NASCAR races. (Hanlon, 2018).
Rate.
Pricing technique of NASCAR for its race occasions tickets is based upon the venue and significance of the racing events. Along with race occasions tickets, NASCAR also charge numerous service fees to its stakeholders and makes profits. It charged approving costs of $1-2 million per race on average in 2005.
Promotion.
Marketing strategy of Technical Note On Managing Inventories Periodic Review System Case Study Solution is highly based upon its fan base. A strong fan base share its fandom with others and increase the number of viewers for NASCAR races. However, the company is not completely trusted its fan base for its promo and promote through local radio stations too. The business has actually likewise adopted the retailing media of promo, in which the business offers products with its logo.
Place.
NASCAR have its racing tracks in numerous cities in United States. The most important tracks of NASCAR includes Atlanta Motor Speedway in Georgia, Vehicle Club Speedway in California and Darlington Raceway in South Carolina. It tries to conduct its races in the majority of the cities in United States to understand nationwide appeal.
Individuals.
Nestle individuals method is comprised of providing better experience to its viewers, its fan base and to all of its stakeholders. People are an essential aspect of Technical Note On Managing Inventories Periodic Review System Case Study Analysis A marketing technique as its events are the source of entertainment for crowd. Its people technique includes efforts to supply better experience to its Fans, Race Drivers, Crew, Event Organizers etc., all of which come under individuals method of NASCAR.
Processes.
Several service procedures are required to carry out racing events in an efficient method. These processes include; correct schedule of time, arrangement for viewers, offering tickets, plan of space for sponsors, managing logistics and so on. These all procedures contribute I building NASCAR image, enhancing viewers experience and increasing fan base.
Physical Evidence.
Essential physical evidences for the NASCAR consists of the presence of its racing tracks, stock cars and racing occasions. In addition to it, its retailing brands consisting of t-shirts, caps, goodies etc., also function as a physical proof for NASCAR.
Item Life Process Assessment.
The racing events by Technical Note On Managing Inventories Periodic Review System Case Study Solution was introduced on June 19, 1949. The very first race was held at Charlotte Speedway in North Carolina. There had to do with 13000 fans present in the race. At the first stage competition for NASCAR was low, as the rivals drove the cars and trucks similar to the automobiles driven by common individuals.
Development.
The very first NASCAR based track, particularly the Darlington Raceway track, was initiated in 1950 in South Carolina. After the development of racing tracks the company moved towards relaying its races on television in 1979.
In 1972, William France Jr., became the president of NASCAR and n about 3 decades, he changed NASCAR from a local Sport popular company into one with worldwide fan base. He started a new era of profitable sponsorships and tv agreements for NASCAR.
Maturity.
The maturity period for NASCAR began with the efforts of William France Jr., with the business having vast array of revenue sources. The company has about 500 sponsors with broadcasting its occasions in about 150 nations. The company has a great deal of tracks in most of the cities of United States.
Decline.
The decrease in the company's offerings began after 2005 with average presence rate per race declined by 22% from 2005 to 2010 and television viewership rate declined by 30% from 2005 to 2010. The major causes of decline include the monetary crisis of 2008, which increased the cost of getting to tracks for audiences due to increasing fuel costs, and the moving of its fan base towards other sports.
Market Segmentation.
The marketplace division of Technical Note On Managing Inventories Periodic Review System Case Study Solution can be divided into 4 segments; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).
Geographical.
The geographical division of Technical Note On Managing Inventories Periodic Review System Case Help is based upon the geographical existence of its tracks in different states and cities in United States, and the tv broadcasting of its events in various countries. The company has 23 tracks in about 20 states of America and has television broadcast through various Medias i.e. TNT, ESPN, ABC and Fox, in about 150 countries.This huge geographical segmentation provides the business local in addition to worldwide fan base.
Demographic.
The group segmentation of NASCAR is likewise highlydiverse based upon the gender, earnings and age of the customer. Its existing fan base is majorly comprised of male married fans with an average age of 47 years and an income around $30-50 thousands. Presently NASCAR is trying to increase its target market to the young growing population and kinds. To increase the group sector of its market NASCAR must revise its marketing methods to draw in more age groups and lower its costs to enter in the marketplace segment with a low typical earnings.( htt1).
Psychographic.
NASCAR has a fan base with a commitment. NASCAR fans perceive it compulsive to buy tickets and see the races once in a week. NASCAR has actually tried to increase the quality of its racing by presenting phase racing, they also have tried to lower costs and make the event more practical by introducing live racing.
Behavioural.
Behavioural segmentation of NASCAR is based upon the behaviour of fans in terms of watching the race live on the television or by going in the events. Currently, the fans choice is towards enjoying the race at house on television rather than going, as the client experience at NASCAR tracks is not favourable as well as pricey.
Target audience.
Hispanics.
One of the possible target market of NASCAR was Hispanics; the young and growing population of United States. The market sector has great possible for NASCAR as the population was growing at a greater rate and it was expected to end up being thrice after forty years and the segment has increasing wealth rate with about $1 trillion of wealth in 2014.
Kids.
Kids are also among the potential target audience segment for NASCAR, as they are more connected socially than other groups. Producing fan base amongst kids can offer a prospective increase in the number of fans for racing due to their connection. Kids invest most of their times in playing and utilizing mobile phones computer game. Car racing games developed by Technical Note On Managing Inventories Periodic Review System Case Study Help can be a prospective source of gaining attention of kids towards NASCAR track racing. NASCAR's digital functions related to kids are not capable of gaining the attention. NASCAR needs more attention towards personalizing and improving its digital features to draw in the kids target audience.
Generation Y.
Generation Y target market consists of those who invested five times more resources on discretionary costs i.e. buying tickets for racing events, than others. This huge expense makes the segment potential for NASCAR marketing technique of increasing its fan base. The market section is also simple to method as 81% of the Y Generation customer uses Facebook every day and the usage is two times of utilizing tv and radio. The marketplace sector views sports as a get-together, instead of adherence to sport. The market section thinks about NASCAR as an organization doing not have in developing a multiculturalism environment. Technical Note On Managing Inventories Periodic Review System Case Study Analysis needs to take various steps to improve the experience of Generation Y consumers in its occasions.
5 C's of Marketing
5 C's of marketing assists in taking decisions regarding marketing.
Climate/Context.
It requires to make PESTLE analysis in order to understand environment or context in which NASCAR is working. PESTLE represents political, financial, social, technical, legal and ecological and is stated above.
Company.
NASCAR is an auto racing company with having USP of high quality vehicle racing with a worldwide structure. Its sector is sports group and occasions. Its target audience is males in the age of 15-60 years. Business has closed business culture and having non-interventionist approach.
Cooperations.
Collaborations consists of distributors, providers and alliances of NASCAR. NASCAR utilized to get pay check of around $15 million yearly from Turner Sports. NASCAR had to get approval from Turner Sport if it want to develop its Facebook page, twitter account or even mobile application.
Customers.
The client of Technical Note On Managing Inventories Periodic Review System Case Study Solution are its viewers. They target clients with having age of 15-60 years. Fan base of NASCAR consisted of married males with an average age of 47, which passes their fandom to their youngsters and produce generational commitment.
Rivals.
The direct rivals of NASCAR are Formula 1 and Moto GP. Groups normally represents sponsors in NASCAR and the medium of advertising is motorists. It can be said that chauffeurs and race vehicles are rivals. If they got better opportunity in terms of rewards and tv exposure, these chauffeurs can go against NASCAR.
Marketing Strategies.
1. Preserving and developing Facebook Page.
Among the possible target markets segments for NASCAR is Hispanics which is the growing population sector of U.S.A. but sadly NASCAR had been unable to draw in the this targeted sector. In order to bring in the young growing generation the NASCAR should market by using social media like Facebook. It ought to develop a Facebook page consisting of the information regarding the races and the locations of tracks to make the consumer helpful about the core operations of Technical Note On Managing Inventories Periodic Review System Case Study Solution. It should likewise upgrade its Facebook page on day-to-day basis to offer information about its approaching events. This would make the target market section more helpful about business and would result in drawing in big fans base.
2. Establishing and Upgrading Accounts of Secret Drivers.
Technical Note On Managing Inventories Periodic Review System Case Study Analysis motorists has a low star power as compare to players of other sports. The bad contacts with fans result in less attraction of viewers towards the racers and a low star power. Star power is an important element for bring in viewers towards tracks and towards television.
3. Developing New Games and enhancing existing video games for kids.
Kids invested the majority of their time on playing games and using mobile phones. Sadly, kids playing NASCARA have a worst experience of playing its video games. As an outcome, they are less drawn in towards the sport. In order to bring in these kids, NASCARA ought to enhance its existing racing video games by introducing personalization in the cars i.e. changing colours, selection of speed, presenting group racing in the video game, utilizing much better graphics related to the racing tracks and presenting numerous levels in the game. All these adjustments in the existing game would offer much better experience to kids.
Along with it, NASCAR needs to likewise construct brand-new video games connected to racing like kids racing with kids characters as drivers, animation racing with racing between different cartoon characters with an option of picking the preferred animation character for the kids. These methods would enable the business to bring in one of its prospective target sectors.
4. Presenting multiculturalism at occasions.
Technical Note On Managing Inventories Periodic Review System Case Study Help occasions are consisted of fans with really couple of cultural diversity, due to expense of arrival in events, making it unsightly for the customers perceiving sport occasions as social occasions i.e. Generation Y consumers. As the Generation Y customers are a prospective target market for NASCAR, therefore the business needs to take specific procedures to attract this prospective target audience. It ought to adopt techniques to draw in the consumers far from the tracks area with different culture. The technique to do so might be offering unique discounts on tickets or complimentary tickets to viewers coming from a particular range or from another state. It would increase cultural diversity of the fans and would make Generation Y consumers more pleased.
5. Improving Consumer Experience at Tracks.
NASCAR ought to work on facilities and facilities at tracks since on the race day audiences got disappointed. Viewers have lots of expectations from Technical Note On Managing Inventories Periodic Review System Case Study Analysis due to the fact that in very same industry other companies are supplying better services than NASCAR. IF NASCAR don't work on this concern then its fans might shifted to its rivals.
Marketing Budget
Marketing budget plan made on the basis of the above methods for the period of 5 years from 2011 to 2015, reveals the cost associated data for the marketing techniques. It can be seen that method 5 of enhancing customer experience at tracks would need highest initial investment and cost and technique 4 of presenting multiculturalism will require most affordable preliminary financial investment with most affordable even more per year cost.
NOTE: The worths about cost are presumed on logical basis due the lack of facts and figures related to cost in the event study. Inflation rate of United States is assumed to be 10%.
Suggestions.
On the basis of deep analysis of the external and internal factors of Technical Note On Managing Inventories Periodic Review System Case Study Help causing the decline of tv viewership rate and attendance rate at tracks, the above marketing techniques are recommended to NASCAR to increase its fan base in long term. These methods would cope with internal elements like poor consumer experience at tracks, inadequate social networks marketing, incapable digital medias like video games, absence of culturalisms at tracks and so on, in addition to with external factors like moving of fans towards other sports, demographical modifications in America and changing family life styles.
